Frequently Asked Questions
1. What is PsiNaptic Inc. and what is unique about its offering?
What is PsiNaptic Inc. and what is unique about its offering?
What market opportunity does PsiNaptic's technology address?
How do other technologies compare?
What are PsiNaptic's current products and services?
What vertical markets does PsiNaptic specifically target and does it have partnerships, alliances and customers in these markets?
How large is the addressable market for JMatos and CMatos and what is its projected growth?
How does PsiNaptic see its key markets evolving in the next few years?
How will PsiNaptic respond to these developments?
How will PsiNaptic continue to grow shareholder value?
What is PsiNaptic's view of the 'pervasive computing' market?
PsiNaptic historical timelines and major milestones
PsiNaptic is the only company developing and marketing stand alone software that extends the power of Jini network technology to resource-constrained devices such as mobile phones, Personal Digital Assistants (PDA’s), Point Of Sale (POS) machines, sensors, actuators, telematic units or medical devices.
PsiNaptic software products JMatos, CMatos and JCopia bring Jini network functionality to devices on the edge of the net, delivering an end-to-end pervasive computing solution based on an open standards protocol.
- JMatos enables very small embedded processors to offer Java-based services.
- CMatos, extends Java's reach into non-Java devices.
- JCopia software enables remotely connected Internet devices to act as Jini Clients, able to dynamically update their Operating Systems, Java Virtual Machines, configuration and the digital services they provide to the user.
PsiNaptic small footprint adaptive networking technologies mean networks of intelligent objects - from servers down to embedded processors and Bluetooth Chips - can dynamically exchange information and service where and when needed, on a single protocol, independent of how the underlying hardware or software is configured and managed.
PsiNaptic combines its JMatos, CMatos and JCopia technology with standard wireless protocols like WiFi and Bluetooth to bring low cost, low power wireless networking and spontaneous interaction to a variety of everyday objects.
PsiNaptic is a leader in pervasive computing technologies in the mobile embedded space and through partnerships with original equipment manufacturers (OEMs), enables a multitude of computing embedded devices to participate in autonomous, machine-to-machine communications.
2. What market opportunity does PsiNaptic's technology address?
- that people spend far too much time learning, configuring, managing and being frustrated by the very technology that is supposed to make their lives more productive and enjoyable.
- that machine-to-machine communication will occur locally over short range wireless protocols to allow services and applications to be exchanged and utilized, independent of the World Wide Web. Traditional business models based on controlled and centralized services will need to adapt to the spontaneous and decentralized delivery of and access to services.
Current PC and server models require users to install and configure both applications and communications functions. While this may be practical and cost-effective for larger devices, such is not the case for embedded systems that are small, inexpensive and lacking user interfaces.
When one considers the effort and cost expended by humans to configure and connect the millions of PCs shipped each year, the mind boggles at the prospect of doing the same for the eight billion or so embedded processors in the marketplace. Add to this the proliferation of sensor that add data and one begins to understand the intrinsic value of PsiNaptic's offering.
PsiNaptic envisions a future where machines interact on behalf of people instead of people connecting with a variety of machines. It is a future where people can both offer and receive services regardless of their environment. Similarly, networked devices (home security systems, hospital equipment) may be added or removed from the networked environment, triggering auto discovery, dynamic configuration and the sharing of services (intelligent metering).
With PsiNaptic's technology, a mobile phone can seamlessly and ubiquitously transact as it moves from one environment to another. A variety of services is constantly available to the user without the hassle of installing or maintaining specific software.
At present, client software must be specifically written and installed for every type/kind/model of device. But Jini leverages the ability of Java and Java Virtual Machines (JVM) to 'write once, run everywhere', by providing the actual byte code required by the client. This byte code (or Object) is loaded and instantiated on the client and run locally.
As machine-to-machine communications become more ad hoc, ubiquitous, contextualized and free of human intervention, business models must also change to allow the user unlimited access to information and services, where and when required, without the constraints of appropriate driver/configuration/revision level.
3. How do other technologies compare?
While devices may be connected through a variety of distributed computing frameworks, often these may be: too big (as was the case with the original Jini reference implementation); too limited in their ability to deal with dynamic, ad hoc networking (UPnP); or, too focused on one class of device such as home audio video interoperability (HAVI). While such technologies may still have a role to play, we believe JMatos and CMatos offer a far more elegant, cost effective and flexible solution to pervasive computing applications.
The use of JMatos or CMatos should result in:
- Less memory required by a device (thanks to auto cleanup)
- Much less (if any) user input (thanks to auto load and run)
- Many more services available as a result of services discovered and used dynamically beyond what has been loaded and is resident in the device
- The ability to differentiate manufacturers whose user interfaces can be downloaded dynamically
- Automatic revisions and upgrades
- Reduced development costs and effort
- Reduced deployment and maintenance costs
- Unlimited applications
In our view, it is unlikely that all forms of machine-to-machine via web services are sustainable.
4. What are PsiNaptic's current products and services?
PsiNaptic has three commercial product lines: JMatos, CMatos and JCopia.
JMatos is a small footprint implementation of the Jini network technology originally developed by Sun Microsystems Inc. JMatos allows devices to discover other devices and exchange information and services without human intervention. JMatos is targeted at devices that already run Java technology and have existing wireless or wired communication capability. We are the only company to date to implement standard stand alone Jini technology functionality in under 100 kilobytes, making it practical for resource-constrained embedded processors.
CMatos is functionally equivalent to JMatos but written in 'C', extends Jini technology to non-Java devices. Very small embedded processors can offer Java-based services that can be anything from a simple driver to a full-blown application complete with a graphical user interface (GUI). With a total system memory footprint of less than 60 kilobytes (not including offered services), CMatos complements JMatos. PsiNaptic has implemented CMatos on a number of microprocessors including a version for Dallas Semiconductor DS80C400 Network Controller and a 32kb version of CMatos for the Cambridge Silicon Radio BlueCore2 (Bluetooth chip).
JCopia is also a Jini network technology compliant software product designed to enable remotely connected Internet devices to discover services and share information without the need for human configuration and management.
With JCopia, remotely connected Internet devices such as set-top boxes, internet modems, wireless modules or appliances can autonomously configure, update and load themselves with the right software and services. These devices act as Jini Clients and are able to dynamically update their Operating Systems, Java Virtual Machines, configuration, and the digital services they provide to the user.
Embedded processors running JCopia can offer and consume Java-based services. The service can be anything offered by a computational, networked device, including access to a network, a driver, an application or graphical user interface.
In addition to our products, we offer integration and testing support for OEMs who license our technology. PsiNaptic Professional Services provides a total product solution including system architecture, hardware, software and application development support that is tailored to specific OEM products and requirements. We provide a modular architecture that allows for simple integration.
5. What vertical markets does PsiNaptic specifically target and do you have partnerships, alliances and customers in these markets?
Underlying our philosophy and the success of pervasive computing is the need for solutions that can operate on multiple platforms, across various networks, and in all environments. As such, we are targetting market segments vertically and horizontally.
PsiNaptic's target vertical markets are:
- Mobile handsets/PDAs
- Automotive telematics
- Machine to Machine
- Medical devices
- Home and Industial Automation
PsiNaptic's target horizontal markets manufacture:
- Java virtual machines
- Bluetooth Chips
We have strong alliances and work collaboratively with customers in each of our target markets. Recent activity includes our work with Ford Research Group, which incorporated JMatos into its Vehicle Consumer Services Interface (telematic platform) and co-marketing agreements with suppliers of Java processors, operating systems and Java Virtual Machines including IBM, Cambridge Silicon Radio, Nextbend and Majitek.
In addition, JMatos, CMatos and JCopia implementation of Jini technology has generated significant interest and support from Sun Microsystems. We are working with their vertical market groups and the Jini technology marketing team to address mutual target markets.
Our goal is to have JMatos, CMatos and JCopia preinstalled as an enabling technology on all devices. To do this, we work closely with the main suppliers in each vertical and horizontal market to bundle our software with their firmware offering.
6. How large is the addressable market for JMatos, CMatos and JCopia and what is its projected growth?
In 2000, approximately eight billion embedded processors were shipped. With an expected Compound Annual Growth Rate (CAGR) of 17.3% between 2001 and 2006, the embedded processor technology represents the single most important function relative to next generation product technology development.
According to Jim Turley, an independent microprocessor analyst, editor, speaker, and presenter specilizing in embedded microprocessors, “embedded processors make up 98% of all the processors sold. Our phones, computers, traffic lights, and gas meters now collectively rely on millions of embedded processors that we never see and care little about. Closer to home our cars, kitchens, and cable TV rely on hundreds more embedded processors. A musical greeting card has more computing power than NASA's lunar lander did in 1969. We wear computers on our clothes in the form of pagers, e-mail terminals, PDAs, and mobile telephones. Thousands of people have embedded processors under their skin, as pacemakers or hearing aids. The purpose of embedded technology is to blend into the background, to become an everyday part of our lives. Our grandchildren are not likely to become programmers in the sense that we understand it, any more than most of us became colliers, lamplighters, or mule-team drivers. Today the average American household contains around 40 microprocessors (not counting a few dozen per car and another 5 to 10 in personal computers). Figure on that number growing to about 4,000, most of them dedicated to entertainment. Video games, video terminals, multiple levels of wireless networking, media caching, and always-on access to friends, news, entertainment, and data will keep our homes humming and millions of MIPS flowing. With terabytes and petabytes of storage, you'll be able to store every book, every song, and every movie you've ever seen or ever want to see.
Toys drive technology. Most of the growth in embedded sales, and most of the advancements in embedded processors, will come from consumer electronics, toys, games, and entertainment—not computers.
With processing power cheaper than mechanical equivalents, even mundane devices get booted up to the next level. Rear-view mirrors with embedded image sensors will recognize an impending collision and warn both drivers. Tiny webcams with wireless connections that cost next to nothing and are no bigger than a coin will push the boundaries of privacy. 10GHz processors will be so cheap and ubiquitous that they'll be disposable. We'll throw away the equivalent of a Cray supercomputer with each week's trash. GPS receivers and wireless transmitters will be so common that every solid object of any value will know where it is and can tell you so.”
Not all of these embedded processors require PsiNaptic technology, but JMatos, JCopia and versions of CMatos are already available for most of the commonly embedded processors used in our target vertical and horizontal markets.
For JMatos, the addressable market is Java in the embedded systems market, especially in consumer electronics and mobile devices such as PDA’s and Smartphone’s. Sun Microsystems claims that there are over 300 different Java handsets from 31 different manufactures. 180 operators are now deploying Java services. Consider also these numbers:
- 708 million mobile Java devices had shipped as of June 2005.
- 635 models of mobile Java devices are offered.
- 32 mobile device vendors use Java technology.
- More than 45,000 Java applications are on the market.
This provides us with an addressable market of over four billion units over the next four years.
Since there are still much greater numbers of non-Java embedded processors, the addressable market for CMatos is even greater than JMatos.
Of particular interest is PsiNaptic CMatos for Cambridge Silicon Bluetooth Chip (Bluecore2). Since Bluetooth’s formal introduction as a low-power, industrial specification for wireless networks in 1998, the number of Bluetooth-enabled products has grown to exceed 500 million. That figure is expected to be closer to a billion by the end of 2006.
Adoption of Bluetooth has been steadily increasing since its OEM automotive debut in the 2003 Saab 9-3. Although Bluetooth is continuing its momentum in new 2004 models from Acura, Audi, Lexus, Lincoln and Toyota, the global installed base of vehicles with factory-fitted Bluetooth wireless communications links will feature in a third of new vehicles in 2012, increasing from just 3 per cent in 2005, according to a report from market watcher Strategy Analytics.
Five key factors have led to an increase in integration of Bluetooth technology in automotive applications over the last 12 months: growing consumer awareness of Bluetooth; a rapid adoption of Bluetooth on cellular phones; strong automotive consumer demand for hands-free solutions; increasing availability of Bluetooth solutions in the OE and aftermarket; and legislative measures, said the report.
For JCopia, the addressable market is any IP connected device. The era of the networked home has finally arrived, as sales are soaring for Internet-Protocol-enabled multimedia devices. According to a new study by Boston-based Strategy Analytics (Feb 2006), sales in the U.S. of IP-enabled devices rose by more than 500 percent to 16 million units in 2005, as consumers rushed to purchase digital video recorders, entertainment PCs and gaming consoles.
The report, entitled "Quantifying the Digital Home Opportunity," forecasts that by 2010 American households will own more than 330 million IP-enabled devices that will be able to share and access music and video across networks.
Lastly, the M2M market is growing rapidly as the price drops for both M2M devices and wireless data subscriptions. Alexander Resources predicts that the number of M2M connections will overtake the number of mobile phones in North America, Western Europe, and Japan by 2012 (press release, alexanderresources.com, January 27 2004) Wireless Data Research predicts a 27 percent growth rate through 2008 (“The Wrap” newsletter, m2mpoint.com, May/June 2004). ABI Research estimates an annual market growth of 40 percent through 2010 (press release, abiresearch.com, April 15 2004). This growth is good news for wireless carriers—FocalPoint Group predicts that carriers will reap $10 billion in data transmission fees by 2008 (“A Machine-to-Machine ‘Internet of Things,’” businessweek.com, April 26, 2004). In Europe, Orange is already offering lower rates for M2M devices and offering software tools to attract M2M customers. Vodafone offers an affordable tariff that includes a basic monthly amount of data transmission and a per-kilobyte incremental charge.
All of the above is very encouraging for PsiNaptic as we believe the ideal pervasive computing platform includes Java, Bluetooth and Jini technology. We are ideally positioned with our Jini technology products, JMatos, CMatos and JCopia to take advantage of this emerging, high-growth market.
7. How does PsiNaptic see its key markets evolving in the next few years?
We believe the following will occur:
- There will be a huge trend to connect more non-PC devices to networks
- These devices will be mobile or single function devices such as sensors that offer data over a network
- Most of these devices will be wireless
- Java will become the technology of choice for embedded devices
- There will be a huge push to simplify the process of device connectivity. It is not practical to think humans will be involved in the configuration and management of billions of new devices as they join networks
- Machine-to-machine communication will occur locally with services and applications being exchanged and utilized without necessarily accessing the World Wide Web
- Traditional business models based on controlled and centralized services will need to adapt to the spontaneous and decentralized delivery of and access to services
- Significant demographic trends will demand changes to the way we live and, in particular, how we deliver health care and care to an aging population
We believe these trends will create significant opportunities for real world pervasive computing applications.
8. How will PsiNaptic respond to these developments?
- Continue to invest in human resources to meet our growth needs and ensure we can dominate our chosen markets
- Continue to expand our research and development efforts to ensure we create leading edge technology solutions that address the resource limitations, cost targets and network infrastructures of high-growth wireless and embedded markets
- Continue to build an in-depth understanding of the value chains in each of the high-growth markets in ways that allow us to precisely target our value proposition
9. How will PsiNaptic continue to grow shareholder value?
We believe a successful company must have a combination of a strong vision, well-defined short and long-term business plans, a good understanding of target markets, discipline in execution, and people who feel empowered and find their workplace stimulating and enjoyable. We have implemented all of this at PsiNaptic from the very beginning and we are well-positioned to continue our growth.
We are addressing the emerging mobile and embedded communication market that everyone agrees will be the next big wave in communications.
We have the right enabling technology available today that positions us well against the competition, and we continue to invest in expertise and know how to maintain that lead.
10. What is PsiNaptic's view of the 'pervasive computing' market?
Pervasive or ubiquitous computing is the extension of applications and services to a variety of wired or wireless devices, including mobile phones, PDA's, vehicles, home appliances, medical devices and many others. It provides immediate access to information and transactions, by connecting to worldwide networks without boundaries, offering great convenience to mobile or stationary users of these services.
We feel that pervasive computing is not only about broadband connections and multimedia content - it is not only about connecting your toaster to the Internet. There are many applications that are not bandwidth intensive that can deliver valuable information in a way that makes life simpler and gives us more time to do things we enjoy. One only needs to look at the problems of delivering healthcare in a society that is aging. Low bandwidth applications for sensors and home care control for example, are able to significantly enhance the quality of life of our society.
11. PsiNaptic historical timelines and major milestones
January 2000 - PsiNaptic is founded in Calgary, Alberta, Canada
November 20, 2001 - PsiNaptic launches its first product, JMatos software for embedded devices after clearing Sun Microsystems' tests
September 2, 2002 - PsiNaptic launches CMatos, extending JMatos Jini technology capabilities to non-Java devices
June 17, 2003 - Ford Motor Co. and PsiNaptic collaborate to bring Jini networking technology capabilities to the automotive industry
January 21, 2004 - PsiNaptic completes its initial public offering
May 12, 2004 - PsiNaptic announces its first licensing agreement
June 9, 2004 - PsiNaptic integrates CMatos with CSR BlueCore2, Bluetooth chip
September 21, 2006 - PsiNaptic Inc. and a Major Automotive Tier One supplier collaborate to integrate mobile devices with car radios.
September 25, 2006 - PsiNaptic Inc. Announces JCopia™ Software for the Remote Management of IP Connected Devices